[Infowarrior] - Microsoft plans Office subscription service

[Richard Forno]

Microsoft plans Office subscription service
Posted by Ina Fried | 13 comments

http://www.news.com/8301-13860_3-9921711-56.html?part=rss&subj=news&tag=2547
-1_3-0-5

Microsoft confirmed that it is planning a subscription service that combines
the consumer version of Office with its OneCare security suite.

Code-named Albany, the product has a single installer that puts Office Home
and Student, OneCare, as well as a host of Windows Live services, onto a
user's PC. As long as users keep paying for the subscription, they are
entitled to the latest versions of the products. Once they stop paying, they
lose the right to use any version.

The product is aimed at consumers that want a simple way to have access to
Microsoft's productivity suite and keep their computer protected, Microsoft
said.

"There is a customer segment that really enjoys this always-on, always
up-to-date aspect of the service," Microsoft group product manager Bryson
Gordon said.

Microsoft is planning to introduce a limited beta version of Albany in the
coming days, with the aim of launching the product commercially sometime
later this year, Gordon said. The company still hasn't decided on how much
it will charge or how the product will be sold, he said.

In talking about the product, Microsoft did not refer to Google Docs by
name, but I have said a subscription product might be Microsoft's way of
trying to find a more palatable way of charging for Office amid stepped-up
competition from free and online rivals.

By tying the Office subscription to OneCare, Microsoft is linking the
purchase to one of the few areas where consumers have shown a willingness to
pay for software--security. In this way, Microsoft can make the pitch to
those buying security software that, for some extra dollars, they can always
have the latest version of Office as well.

Those who subscribe to Albany will also get several free Microsoft products
pushed onto their desktop--including online document-sharing product Office
Live Workspace, Windows Live Messenger, Windows Live Photo Gallery, and
Windows Live Mail.

Gordon argued that having all the products installed at one time is seen as
a plus by the segment targeted by Albany, but he agreed that some users may
not be interested in having so many Microsoft products foisted upon them.
Office and OneCare will continue to be offered in traditional ways, he
added.

Other products may be added in over time, he said, and Microsoft could also
try the Albany approach for other market segments, such as small businesses.